Bottomline (EPAY) 9 May 202020 Q3 Earnings call transcript

Welcome to Bottomline's Third Quarter 2020 Earnings Conference Call. My name is Danielle Sheer, and I'm joined by Rob Eberle, Bottomline's CEO; and Rick Booth, our CFO. I'd like to remind everyone that statements made on today's call include forward-looking statements about Bottomline's future expectations, plans and prospects. All such forward-looking statements are subject to risks, uncertainties and assumptions, including those related to the impacts of COVID-19 on our business and global economic conditions.

The forward-looking guidance we provide today is based on our assumptions as to the macroeconomic environment based on the facts as we know them today. relate COVID-XX. beyond assumptions the control, these of impact of to our matters including Many to cautionary with forward-looking in refer uncertainties to most a Please be the of statements. that recent and earnings discussion from company's periodic Bottomline's could release materially cause reports actual risks different these filed the the the for language SEC and in results today's contemplated those update any does forward-looking Bottomline obligation not any to assume statements.

of These presented this to operating include, non-GAAP available call, and available most basis. Resources our upon Bottomline's Investor A a During growth the income, the financial margins, of share. reconciliation comparable GAAP income during results are summary others, gross company of on the currency the call results guidance in measures net from your provided is constant earnings among the measures is per request. these non-GAAP financial section rates, EBITDA, non-GAAP A directly website.

Let Rob me now turn remarks. Rob? to his for the call over

Good to the third earnings Technologies afternoon, and XXXX welcome quarter call. fiscal Bottomline

team. quarter for the the our fortunate. Bottomline. of nature of It the third of was quarter power mission-critical execution our business and applications, model a agility our and demonstrated The We're strong

recurring are disruption. unimpacted The of our vast majority revenues by pandemic's the and

be Our see profitability business. will business modest, model every and produces consistent We effect, temporary. some relatively it strong and like cash flow. The is impact

digital transformation from payments. impact this benefit the business of of crisis of the term, the well be Longer address positioned will We're that. and to acceleration

top is of stronger than advantage position of We What's have emerge this to through product cycle and extend plan before. now COVID-XX. and the right mind competitive market set, impact the ever our

and three clear priorities. simple have We

stays million. up team; caring the key well-being but year and was results our $XX.X the Subscription strong first, each, third quarter. of XX% and company the emerges That's third is the First, a supporting and ensuring I'll safety ago. on stronger. second, revenue our it's comment Bottomline customers; and financial for from it's for

see given actually go-live normal to in were transaction activities. customer We $XX.X That continued bookings was of Revenue, produce and quarter growth cash. million. timing solid growth close confident overall, in particularly subscription revenue and by sales the as quarter which the Subscription XX%. progressed. shifts and million. offset EBITDA $XX.X other disruption was started engagement we'd volume, declines acceleration of the over And with the ended was million $XXX $XXX.X million, was quarter we partially

strong third for financial the quarter. results So

in important, my term remarks I'll our expect how we're and short-term what we see on focus the we most seeing, the priorities, longer what currently out. playing

priority has first than working from been our and Our business more just home. is health the our much team. continuity of plans executing and That really encompasses and well-being It remains special of for providing shipped supplies. the impact situations, business virus for leaders, every necessary continued at and level, support the and support for even drop office when managers training monitoring arranging

not all, operates. likely measured, team taking company. business in some been crisis a in reality. new the thoughtful cannot to most, and be Bottomline prouder geographies approach business and The to a for in of the continuing do We We're if has mode shelter-in-place next of can our We be our operate phase will responding to and effectively so time. cautious extraordinary

deepening thing need at a they when Our We're we can. and second our doing also any priority We're is that. through most. relationships way in this doing customers in with them right seeing serving customers us the time

Our taken have many forms. efforts

on as implementations means customers continuity In and challenges. some reschedule working cases, focus to other measures business their it

in was As customers case, the each and reassured expected, business we've plan and Bottomline our received that right responded hundreds continuity of and inquiries, prepared to partner. with readiness

listening reaching Sometimes, support. out, offering and just it's

to upon important we could and the stimulus role. shape, relief begin programs As been to called banks an take play federal have see

help. knew a our We saw many physical bank it, opportunity and were We demand branches a made to We online to when extraordinary create or account Program Protection loans. needed available the time an not. were closed. of would repurposed this capability produce any it a We to whether who Payroll be Bottomline challenge they at opening customer

in have over we approximately loans, Today, serviced X,XXX business $XXX applicants. million small representing

or Our without that days. which noticed capability was teams other in across purpose a and well charge, to transaction with matter make received responding platform no team the fantastic the BT the available a industry of example agility. of and did back-end an entirely a It's our offer this incredible job We was fees, just fees and company. gimmicks,

Our support of is times, who our challenging and who we good in in are we customers are certainly that's remains a times. top priority, it

third Our company stronger. our strong emerges that stays and is priority ensuring

terms by strong, unimpacted and In The there's a working favor. economic our our pandemic stay lot the revenues we in of of majority disruption. vast are recurring ensuring and

Our produces flow. cash strong and business model consistent profitability

and serve such Paymode-X, however, in professional customers all Those revenues. impacts impact businesses, streams, and the we continue industries. did as some sheet, most Like We quarter see the in QX. dates service backlog for March existing areas: licenses we have software balance revenue transaction-based business will a go-live in likely in strong following and

were clear is much April, bookings sales quite bookings for mission-critical We're we and March this accelerate in applications particularly at remain will The sales far, watching bookings in million, drive with and is positive. and new so closely harder also interaction suggests transformation, provide. reasonably increasingly as solid becoming $XX.X customer change we likely intact. Longer term, strong environment. the which digital saw demand this quarter's impact It's customers crisis results the

We that. may of the be beginnings seeing already

off chart webcast, the seen COVID-XX has AP amidst engagement. recently recent the on-demand managing Our

disruption risk activity adoption. we've once we're confident economic We the to The technology seen increased will that. in resumes, see accelerate demand manage and desire will

the Our requires. product to spot-on digital capabilities new address the set is reality

the see shifting landscape our also We way. competitive

the in customer financial downturn, and strength have investment and economic now a businesses to flight to select as sustain and any benefit from trust, continued they success. quality, they During vendors we banks technology

trusted this during the brand. with deepened response partnerships our customers top-of-class ongoing our we have has crisis enhanced and already Our

a through raising amounts of our large as capital well. competitors contend of burning who've Many not have lot were with. Companies to fair and been

Our remain meeting our the will on of business. demand focus innovation, customer size and value and growing driving

in summary, has responded COVID-XX well company crisis. extraordinarily our with the So

resilient to focused quarter, accelerate risk strong with the coronavirus We're consistently. We're well-being safety strong. operating to on of continued crisis. an and digital We delivering by and keeping and bookings We're business agile protecting and strong deepening our effectively our reduce revenue customers are motivated the customers subscription had team, a for who and relationships and response growth, highlighted transformation.

transformation, mission-critical skilled experienced, drive strength and digital of dedicated an applications that trusted business, partnerships The crisis has the demonstrated and team. the

we see ahead, acceleration inevitable Looking outcomes. as an in fundamental changes demand and

stronger. even We have plan the to emerge from this opportunity and situation

it So now then, of available Rick. over course, his both I'll And be we'll for questions turn to remarks. following

up a in $XX.X million Thank seeing million we per impacts quarter. on EBITDA $XXX.X was of million, $X.XX earnings and revenue core bookings you, Rob. were report quarter. revenue the to Subscription year-over-year. million, and and $XX.X initial with of COVID the solid pleased $XX.X despite XX% Subscription I'm share, produced total of all

call. I'll cover in this four topics

model First, I'll our business and briefly sheet. balance review

results. Second, I'll our QX review

provide I'll QX given commentary, Third, situation. COVID the

model. business perspective, comment and a long the on I'll look at profitability is From predictable finally, our consistent, economy ahead our core but once model And business normalizes. the outlook of

XX% We recurring revenue. have

industries across are enterprises businesses. primarily large small a to as of customers opposed range Our leading

facts of over $XX key I'll EBITDA March. some ending financial of the $XX the actually highlight of is generated balance as months And we In and a and environment, XX operating customer sheet million briefly about well. in million cash this flow strength priority, our

a $XXX of allows credit EBITDA investments while ratio have We cash of reporting undrawn matures credit facility, million XXXX. to $XXX $XXX we're hand, leverage X.X, a And the million of full in presently and credit to on go X.XX. and July up agreement us which net million

of Turning despite in to XX% target this the disruptions. million of which revenue solid quarter subscription equivalent rate. XX%, $XX.X our We grew on basis. quarter, beginnings is is results in to annualized the within XX% Subscription million COVID-related $XXX to results. revenue an reported At the

up from up percentage was million, subscription $XXX.X and full results solid revenue million. year-over-year. offerings, of $X.X was reported And We at ago. percentage seven rate, revenue, service points revenue License Recurring was revenue million, this sales a from $X.X total total five XX% was total revenue as year of revenue XX% points came well.

Customers our same to period. for bookings product bookings, and signed This Paymode-X us brings subscription European in led subscription Equivalent to $XX of revenue by subscription $XX.X four million new set. the XX% of quarters. in new the million last

payers, Our including added deals. new XX Paymode-X several large network very

go-forward $XX.X yet being signings, the the approximately North product management digital We we in to signed their not of set, signed we to And million America. to roughly annual insurers our which our in selected fourth go largest subscriptions, we and as also With platform with bank a banking in digital by one-third new customers two XX but network of new were which legal groups banking quarter. finally, us. are expanded one of live those three spend relationship signed, have we and P&L, expect our insurers another recognized

Turning to profitability.

We despite model. given million. fixed to This be Core XX% income of earnings largely $XX is impacts our profitability continue expected, flow-through through COVID-related to EBITDA revenue. $XX.X cost produce of consistent operating flowing was million earnings. was the

which year-over-year. of conditions added were X.X core $X.XX. of $XX subscription power the we results scale per gross normalize. revenue, to our was model of to reflects of million up This XX% margin. business flowed Driving gross through margin XX%, share subscription And these earnings points margin percentage Year-to-date, expansion once

cash of perspective, free buyback $X generated from XX,XXX shares and flow, of we flow. And million cash million flow $XX our million pausing before $XX in repurchase to a activity. we QX, cash operating used

observed the COVID impacts we Turning that quarter. the in to

impacted. our subscription was revenue, For revenue majority the subscription not of

on see did however. We of areas two subscription impact revenues, the

Paymode-X, payments. of growth some three dates we implementation due impacts. points First, volumes Combined, out like estimate subscription experienced higher COVID-related go-live QX meant as have been activity to transaction-based reduced customers two economic And platforms these disruption. could fewer shifted to without lower second,

were and revenue approach environment. License more lower as QX. $X took Maintenance revenue software These respectively, COVID $X.X this and in you would and expect to compared quarter services, commentary not revenue cautious million, by against as inform on prior customers million was my impacted. a service impacts the

fully and go-lives we growth ongoing For from normal customer subscription expect expansion. revenue,

offset may that quarter's But a be full the reduced by impact activity. fully of

we precision, subscription QX's revenues while expect difficult with As forecast roughly to revenue. to equal subscription such,

total noted $X million in subscription and services million to For further a impact impact revenues. addition software, above, other of revenue expect we revenue, to $X to the

million core revenues, For million and QX. $X income profitability reduce with versus in combined EBITDA, up $X to seen to the could levels of adjusted reduced ongoing costs,

quickly the economy as we performance level world, the as ahead of post-pandemic ramp look recovers. Bottomline And up should to a normalized to

the Although, we this is forecasters concur with emerging among within economic that XXXX. calendar consensus unlikely

accelerated growth the upper revenue For end subscription our to subscription revenue, in range. XX% to of fiscal XXXX, XX%

at as We higher, return levels increases expect even to these as the to economy growth or if demand expect we normalizes.

to the services cloud revenue, by expect revenue impacted preference Now situation. at for depths continue EBITDA to as And margins strong. for we non-subscription on-premise over current modest applications a remain operate XX% would the to And from would normalizes, revenue we from and but economy the expect pandemic. to expect XX% non-subscription as particularly decline our perspective, the software profitability more of customer We a the were at rate. solutions to emerge we

sheet to have business I'm and report balance conclusion, in So pleased a model able been to strong position.

the relevance QX, of financial pandemic outlook solid optimism in post shifts for our about next world increased described and the Solid quarter and to due that Rob solutions earlier. results the competitive a

questions. we that, open with to the call And can

this Please Thank Citigroup. [Operator comes be At instructions] question-and-answer state your question a conducting session. with time, first will question. Andrew from you. we Schmidt Our

Thanks taking you. questions. Hey, guys. with Good for speak my to

revenues, you transaction-based variability. size It on key source seems be to us First, could help of that? a just

April? Just helpful. into would maybe and fiscal in quarter trended your what's perspective a then then how framework for embedded comments March lastly, And on And fourth the perhaps, in those for those businesses? for that be some then

Hi, Andrew, this is that. Rick. I'll address

transaction significant note management revenue vast in have First two is legal We that and of our that the majority subscription fixed importantly, nature. and to I components, products most spend Paymode-X. want have do

what the until And virtually would all we little payment roughly the trends month declines we've with third the of month the versus and of of in healthcare. bit right X, We're saw chain up to seen volume of across see disruption May industries, supply quarter. starting end have expected exception through at normal a we the the

Rick pandemic as I'd thing have one we to The we what say Yes. I'd that, what would add slowdown. would and expected business said, have without versus the expected. a

good Yes. That's a point.

been have we three growth higher. points could I think without pandemic, that the two subscription estimate to

you are guess for I quarter improvement? on comments fourth I the in in step some what's then subscription you know your that Okay. a current fiscal That's helpful. assuming growth And gave – the the the quarter. trends down continue trends or fourth perspective

there of piece help any be the would with Just volume-based subscription trends helpful.

primary There's he Yes. driver.

customers So of growth underlying have vast majority go remember, we live. the fixed. as our are And subscriptions

to cross there's currents speak about and to many speak. It too isolation. be So isolation, wouldn't volume useful

But between be we'll the able by customers changes XX% similar to volume given going which of that growth so quarter, this to be live ramping had select currency revenue million, new XX% constant existing continued think we to to what actually would We in offset pound. the customers, subscription and declines. deliver $XX.X similar the

that's in think we So this environment, solid. pretty

was I Yes. expecting. than That was higher what

fair. So that's

more, Just if a I may. couple

into like in continue whether you've about strong drop-off on seems March. interest? the Could of trend, you the just slowdown pretty comment? activity Could seen sort in bookings where bookings, Just bookings you in and be bookings you're maybe It April. talk the any getting to maybe given the good

think some distracted, it bookings just a given clients further your we on comment then logical be that on cycle. obviously should could in cycle how about perspective bit a just the And environment, seems sales deals be this in little elongated. might are Maybe the that sales that along were

don't just be given perspective know helpful. normally about going quarter-to-date. bookings we I you the it on should how affecting then on forward? think just any but booking this, Just cycle the And And sales trends environment, might comment

Yes.

I'll of great in there, try piece So and touch on each stuff and it. a lot of you covered

ended, deals our off, We've initial thoughts exactly got and what bookings was you response closing, our March First were really as are said. solid. initial that pretty

that. are result activities, where have of on the which are or But and much common Actually, couple a of meet business can't Zoom, other customers continuity approved, so that plans operations, counterintuitive And over carry outside much, was and going stronger you programs a of focused you challenges. line. have probably with activities very anyone that April still a finish which as sense conference on, environment that's There's internal web the than of momentum is in and experience. purchase says an different things said, lot been a their

said, manage are strong did, in well, a being we a And That payments and we're on interest, fraud as pieces top-of-the-pipeline the new real the materials, April. how by seeing have can different strong we way. click-throughs of fact,

our metrics on You're month, entirely a right. give on We an don't environment. but usually different

we doing million we So won't $X.X had be is which not that it's month, for in the future, the solid a but bookings because really business. of linear

You're month months a always less bit circumstances, more more – deals in future normal Paymode-X on the the see XX a in a and to now. going bit first bit under

viewing this everybody less if common we see people So down how tells sense changing but we'll wow, you, are know in also that shut bookings the fundamentally is businesses.

they're much remotely, and talking now whole world do that and about your they're how where reconsidering they a that's And thought never was is plays. major I and this changed this were had things on new and transformation with digital opportunity, could Paymode-X reconsidering customer strategy. they call reconsidering, a exactly they so

So a common economy. real activity in less April lot say, a strong was But has sense, of been slow strong. and

agenda. we're every to standpoint ourselves, that doubt is piece booking to really that. acceleration out to return an drive today, the we get and everything transformation in around answer both is I'll we're product customer to normal, catalyst. piece a much payments. of And this, there's for positioned for in a and say, not Bottomline a extraordinarily which apologize, as from results position I if doing sales digital business well but no What of this ever And Last long try of is trying

So wave we're really the will riding on strong what other we side. think a be

back That's I’ll in helpful. guys. I time. skip a queue. have a follow-up, jump lot, Thanks but I'll And the this

Our with Raymond next question. James. from comes question John your Please state Davis

and well all hope you’re I afternoon, guys. Good doing healthy.

sort uptick new First, it verticals are your uptick seeing give that for pretty versus any Is What you coming maybe around others? some your comment And be through you're noted I in bit demand I have there both? several maybe channels, or a sales demand. just automated dive through what is significant a in of in And force other think first, AP, of of wanted or – verticals? peers commentary from? a also, specific private channels the that the guess kind or your banks bigger little there would any can on to of helpful.

were say, exposed Well, vertical. should To particular any on I verticals, not of one, that's simple. Bottomline's verticals some to kind –

to need So all types businesses and pay paid. of get

customers in have we types So industries. of different all

lot travel of payments. travel folks a agents, the those lines, have of cruise as We customers, kind

course, we that is at all and Of off That's overall terms channels seen of levels. of revenues. we've What on small demand portion seen our in have relatively XX%. a up actually interest

play. The position on vary question the and the interest But mode, is industry are have they're whether to and net-net, that since particular the businesses think since of and about what's shelter-in-place depending status or requirements survival the sheet their in the and into more up virus like. a is balance will business, come next, the more in

rather Okay. Those that have than come And you been maybe cash. smaller That's later. of noted properties your then I for burning peers helpful. some may sale think sooner

an I a past, or could interest the Any situation one picking but of in think now. it And valuation it maybe appetite. be those been like has issue up, feels different

there's on advantageous for just forward? be going you any may comment or if beneficial maybe that, and that So specific area

into Well, innovation and would overall really what say agenda. our product I fits

types lot innovations those we're market. pieces. It's around product insights, position, of to So a around around bringing an organic doing fraud. new from it's data, it's around it's cyber We're

to value I in be new more takes something example, providing for or we're something But the an it integrated typically From there's valuations the time accelerant always there's to for an bit a piece little places in. standpoint, that, doing. a Paymode-X, can that to new think sink M&A vendors payables more

those down Sometimes valuations. around are

the seeing those looking So are. we're where certainly market, across opportunities

been that And many we typically kind silver event. direction. pay could of be valuations wanted you're that and of what beyond That's come lining our of out past, have a things right, would the whole one have the to this could in

Rick, And I'm then the hook. Thanks. you going Okay. let to off not

commentary, the by of So margin I was kind pandemic just pleased longer-term post XXXX, the XXXX.

just takes. that's changed puts just in talk kind levels. for shift you for anything as call see Obviously, and catalyst And Maybe a business. business to similar about time payments. been in drive automation long of the if the So the waiting it of the especially we've kind

So given if how what's post all, changed, commentary there there is margin on outlook at any the has COVID happened?

Yes.

what But sign the we're we're increased outreach the to lower and volume seeing think is is term. continuing customers. in short I

be So short-term there on some will margins. pressure

with our familiar of But high you're incremental margins. course, all

continuing moving And look we our so And subscription continuing see margin. closer to expand of post big the a business those that's gross pure at model. new that part really model the year-over-year, pandemic. to you and When

although post think can't will pandemic when say exactly I I So be.

I of think that favorable the gross terms margin outlook that in margins. for is our

thanks Okay, guys.

George state question next your from question. Please Sutton comes Our Craig-Hallum. with

a will of payments. little Rob comment Thanks Adam I serve for so business about my on We're you transformation further early for a taking as few times far? in a how as This could an you priorities what's how accelerator you is still and this customer was for question. but talked innings, George. the Rick, happened result changing obviously see on in hoping

How on sort very got part, what? see last I connection. the lost Say we the customer of

changing social of Customer as result and a COVID-XX, like. distancing priorities the

It's answer. business something it internally, time, the we one the going has moves tight got and always to inertia. we've businesses It's want to of be just we're said Why biggest be... priority. competitors It's in something talked will do. something to funny. our would It all will a it be – We've been a up do. This

while If be Rob's will avoid talking, that you typing helpful. can

it secure, out do Yes. which Why their in the own priority of yes, of in just payments is all less less those reasons, efficient, coming printed being continue moves to it own says, office, facility, checks and would a have we up business their should really office this.

second you been organizations there The do didn't believe really piece could is this. that have where

business very As has large the to about ago process. of days everything this couple made their a was group them about business, I said, talking rethink everything their

transformation, the digital on And made of actually just broader payments. comments much so business acceleration digital than I've it's

sales you've I think – It's and to out. trade on an have going how interaction. conferences, of will major impact it's come those BXB It's going marketing. to and the have on impact beginnings sales seen impact on an going

efficiency, the I there's think can – that seen is lessons But the automation and benefits in do business world here just now. and continuity digitally, it if and cost you've getting a one this says, beyond benefits we're we of there's

interest. So seeing we continue side. you other of come that will lot again, we're that, on think a out And as the

in being distancing of work-for-home with those along how And has social able and schedule, terms frames? go-live and go Great. your policies time to serve customers implemented

the Well, customer. going on with actually the what's biggest is challenge

We that. have to the ability do

Our have do ability that. the to teams

where can this question of different environment. to And a you're Our appropriate schedule. we or the can customer just that? helping customer None pushing a to that's them of points at is, technology sit keep typically, do or them long in that. where The nudging maybe do

we business up isn't and way the an well Or challenges, we to to be shelter-in-place continuity. So other have work sensitive maybe organization priorities are, a from the as mandate. set to

our to what's not specific Bottomline. the It's agenda going first. is are they The So and time to a customers there with delay precedents. on push implementation, impact be take is we is to need to it biggest to have they put And biggest need back, real impact not to really a time reasons customer. an This that. sensitive for with that

new pandemic do future? you during internal what you that expect obviously final them this was to then I the is provide hoping still period. there from new, The in team And And is color, some sales also me. question the but having you've from them anything could impact for seen

a there'd a response time new it's if have so far. we're a relative it's marketing other team board to normal, that stronger don't good seeing it's and team now, because, and joining the again, on team that and of be pandemic super know be good had seeing level a stronger than to we're to than I interest, anything strong materials

think but a unique interest. or don't benefit I out something timing top-of-the-funnel the different, it's we're more well worked So as really seeing

Thank you.

Thanks.

comes Our from Tandon Needham. question. state next with Please question Mayank your

Good Thank are Paymode-X I COVID would and area that. I be the maybe the you Rick, and on on in of you. transaction that be evening. the of parts better financial wonder it, to comment your also related thoughts other holds terms Rob expectations of could the some legal just from impact I if What's revenue? It up what's maybe Maybe that your messaging? in of Just the missed side. business. terms Could business than an apologize.

and What's activity money we've all interesting occurred. in different there that's in increases actually levels financial banking of movement the because messaging, volume some seen

model. we'll you're drive think April But a revenue longer to think – cycle. event, doesn't you in happen litigation that That's right if I about begins revenue. spend is March that that, transaction-based that much a timeline the

I and very steady seen be will further So March to and over April management. in spend in time any impact in out. We've be that levels think legal

Yes.

noted, financial now. at things are a so got right in emphasize you've on is essentially is of I up perspective, The fixed, LSM revenue want least that well as there. holding to that that other Rob volumes subscriptions terms And from thing decision going

Excellent.

any also publics, sort wanted competing I you been few or the privates competing Rob, on payments the follow-ups. competitive banking digital noticeable deals? margin of at Just among noticed change new these you've ask, to who's competition, the these change whether business in on you climate, for maybe with any Have deals. and a as the

a I'll there's unrelated think to and I then couple comment, comment of related COVID. COVID I'll things to

we to continued leadership. clear have COVID. to our extend First Digital unrelated off, banking, just

their banks platforms, what's our capability, investment I which was from made to in award market that learn risk the insights more this make next the more industry opportunity, their understand essentially analysts, that from award, about technology, customer. each customers Barlow we allowing referenced awards to think the to another their lesser accolades we've losing click and we're on customers recognized know of the there

the So we been in on very from in a leadership That's the landscape occurred in seen competitive put That's see to technology flight in, quality. always that's we've think a what leaning other any and position. in this product side, we've a us environment good as downturn. what Where will standpoint, XXXX. I shift and, occurs

And as fairs the customer referenced, going the you highlights touching understand position? to new of want invest and continuing to Customers be financial on to will success Rick your capabilities what's position Are Bottomline in do sheet. really And balance where is ability strong so. in well is and company you a do how and that. sheet, to – your public financial a with balance

partner. innovation trusted a we're So

We've funnel out been the throughout to to this to ability have that whole customers. through customers reaching and continue We process. to

a mold bit newer start-up think little that a a to I competitive entrant So or either more a private adds enterprise. or

the housekeeping Rick, banking release. just for Rick. did Right. couple out then see in a I didn't piece? established of And versus break the digital that you

that then had are it, then helpful. you guidance for would what kind of using also, you terms So the pound fourth level the your And of if long-term be quarter in outlook? and

Yes.

XX% As and longer as be rate be rates assuming of FX growth a holds about basis. to that business, and on XX% on QX. from have we in that's we'll And And part we converged, today's it the subscription, now although through them between remainder of reason footnotes for currency that why to financials. perspective, last published we're call, the our growth the the guiding the split of constant deliver a when be the an will roughly revenue flat will discussing digital separately, talked banking no

you so Great, much. thank

Heckmann next Peter Please Our from Davidson. your comes question. question with state

just much information the assume did facility incremental an precautionary a but more can we end it credit draw the environment, that It's the giving just on before get, caution, a for like the better. information. I the quarter. but you so Thank looked of you tough Was measure? in excess of

Yes.

just there Okay. several March cycle And Just that to more a the little more and to months? trying it bit stretch of around of saw be were evidence kind the payment more, activity effect any month you or you maybe if in April? is out figure then trying the end could the in

Anything more is are is customers payables see. trend believe what then we statistical, anecdotal a stretching, on that how on cycle but that do question can and the are payment And long bit based payers our the stretching conversations we that than will stretching continue.

Right, right.

the Okay, thank you for feedback.

you. Thank

Schmidt comes Citigroup. question state your question. Our Please with from next Andrew

Hi taking my follow-up. guys. Thanks for

of one advantages for investment to while some motion. ability the already been I think be you had is continue in to have you might that know occurring. I weakness this plans set invest the

wondering you've if the could give areas network. Paymode-X a maybe you're know to in. the that talk, again, little in for investing flavor the I mentioned more just past, us you more Just value adding

I you're What you've in just mentioned a of investing. bit that. think if on terms you perspective give more more where adding like today, AR little things the side, value could us

when that we this, helpful, of for you have come clients. functionality about out just I thinking it's think particularly the

Sure.

data platforms, across So insights. and of is a all with respect to our big about platforms, really, part

in customers capability, in as ago, corporate we've an So that click banking, online every bank an a for this might increase example, few moments And to a as our activity. seen mean I have digital ability the something. and for referenced, using platform,

cash – an there's candidate. payments, that we've investment and balance, activity. that in customer Or juggling that's excess decrease has product seen someone a a might a seen facility seen be candidate. We've We've credit an looks

time spending actionable all next in providing about So one insights in capabilities are of knowledge we're customers. to of of a understanding, today the those items, investing lot customer,

fraud. be other What increased the around of sad on? capabilities, fraud reference this have and any not The It's with what's instances a second cyber would reality going that disruption. I'd by accident

So we're in and fraud continuing from integrate straight our platforms. they're be helpful if cyber payment available can to And invest to that. with solutions

we've to invoiced to respect that platform be With full pays. Paymode-X, broadened

more, the as full So capabilities we've capabilities, well larger addressed we And payment are payable businesses the enterprise. out more for introducing as type. small any and future, integrated introduce medium we so and in will, vendor. been We've

be a I network. value vendor, and be harder. for if to much payment to type particular But less it's both there proposition a much, has there Any the can on a network, payer value of mandate try sides.

So the a value to of that. to we're bring Paymode-X, in and we vendor increase lot continuing

the our talk it future, I'll a a take standpoint, picture. from today, Where from management. we and market just be a example been managing quarters, have the that? a we're couple of couldn't not to intelligent are an operating We've on Where but while your at is a yet better don't And that which capabilities last cash you about the it product going? we that today? working more How then for will is our capabilities cash that's next And happening piece, that really bringing with is what's standpoint, timing an market, have in investment but that's new good of for. look

the All right, much very guys. for you Thank comments.

Andrew. you, Thank

closing back remarks. Rob Thank to are you. turn questions Eberle the no for time. call and gentlemen, there Ladies further I'll this at

a in Well, thank in Bottomline. fortunate Thank you, your you interest everyone. We're, position. again, relatively for

before. to Our We that business look forward all this quarter and priority the of to our – both than I Rick hope is healthy and the to our safe. forward and well-being going our in time fourth safety we're ensuring reporting caring of our bit for team, customers, I confident here. exit stronger business a And strong, remains and look you even on is stay

may This a you. disconnect. today’s good day. All Thank concludes conference. parties Have